LENDER LIABILITY FOR FALSELY PROMISSING TO MODIFY A LOAN

October 1, 2012

A California appellate court has held in a case involving a residential mortgage that a lender may be liable for intentional infliction of emotional distress when it has represented that it will modify a loan, but thereafter does not modify the loan, and proceeds with a foreclosure. Raglan v. U.S. Bank, N.A., 2012, Westlaw — (Cal.App.)

While the facts in this case clearly showed that the lender promised to make a loan modification and thereafter did not, this case leaves open the door for not only a new wave of lender liability cases on the residential loan front (and San Diego Superior Court already has one-third of its court calendars filled with such cases), but may open a new front of litigation by borrowers on commercial loans.

GERSON LAW FIRM APC

GERSON LAW FIRM APC represents clients on all matters real estate and business related, both transactional and litigation. GERSON LAW FIRM APC is nationally recognized for its representation of some of the nation's largest lenders on loan closings, special servicing, and enforcement proceedings throughout the United States. GERSON LAW FIRM APC practice includes representing lenders closing loans under Fannie Mae's DUS Lending Program and Freddie Mac's Program Plus for multifamily investments. GERSON LAW FIRM APC represents major national banks, life insurance companies, and private funds in all matters lending related, including originations and loss mitigation strategies, for hotels, office buildings, shopping centers, multifamily and construction.

Michael Tucker mtucker@mba.org – reproduced from https://www.mba.org/mba-newslinks/2017/october/mba-newslink-friday-10-27-17/commercial/multifamily/freddie-mac-finds-widening-affordable-rental-shortfall October 27, 2017 The already-acute shortfall of affordable rental apartments has widened “considerably” over the past six years, said Freddie...